AP Møller-Maersk has secured a new sustainability-linked revolving credit facility of US$5 billion through a syndicate of 26 selected banks.
It was reported that this is the first bank refinancing arranged by Maersk after its transformation from a diversified conglomerate to a global container logistics company.
The selected banks include Barclays Bank Plc, BNP Paribas, Citibank N.A. London, Crédit Agricole Corporate and Investment Bank, Deutsche Bank, DNB Bank ASA, J.P. Morgan Securities Plc and Morgan Stanley Bank International Limited joined as lead arrangers among others.
The facility refinances which amounts to US$5.1 billion facility, will be maturing in 2021 and has a tenor of five years that may be extended by up to two years and it will be part of the company’s liquidity reserve.
“We have received strong support from our global relationship banks. The facility was substantially oversubscribed, and we are pleased with the terms and conditions of the new facility,” said Henriette Hallberg Thygesen, chief executive officer of Fleet & Strategic Brands.
Maersk says the credit margin under the facility will be adjusted based on the company’s progress to meet its target of reducing CO2 emissions per cargo moved by 60 percent by 2030, which is significantly more ambitious than the International Maritime Organisation (IMO) target of 40 percent by 2030 (all 2008 baseline).
In 2019 Maersk announced its commitment to becoming carbon neutral by 2050. The new finance facility affirms Maersk’s efforts to drive sustainability into its operations and supply chains.
“Given the lifespan of our fleet, we need to find new and sustainable solutions to propel our vessels within the next 10 years. To realise this ambitious commitment, we are partnering with researchers, regulators, technology developers, customers, energy providers – and now banks,” explained Hallberg Thygesen.
